Microfinance Investment Funds Key Features

Microfinance Investment Funds Key Features Luxembourg Patrick Goodman Consultant ADA/KfW February 2005 Microfinance Investment Funds Key Features This publication was prepared by Patrick Goodman as consultant for ADA and KfW. It was originally presented at the 2004 Financial Sector Development Symposium organised by KfW on 11th and 12th November 2004 in Berlin. An edited version of this publication will be published by KfW and Springer together with other papers presented at the Symposium. Luxembourg Patrick Goodman Consultant ADA/KfW February 2005 ADA This publication was prepared by Patrick Goodman as consultant for ADA and KfW. It was originally presented at the 2004 Financial Sector Development Symposium organised by KfW on 11th and 12th November 2004 in Berlin. An edited version of this publication will be published by KfW and Springer together with other papers presented at the Symposium. The opinions expressed herein are those of the author and do not necessarily represent the official position of ADA or of KfW. The document can be downloaded electronically from www.microfinance.lu and any comment can be sent to ADA at adainfo@microfinance.lu February 2005 ADA – Appui au Développement Autonome 15, boulevard Grande-Duchesse Charlotte L-1331 Luxembourg Tél.: +352 45 68 68 1 Fax: +352 45 68 68 68 E-mail: adainfo@microfinance.lu www.microfinance.lu Copyright © 2005 ADA – Appui au Développement Autonome Short excerpts from this publication may be reproduced without authorization, on condition that the source is acknowledged. For rights of reproduction or translation, please contact adainfo@microfinance.lu I4 Microfinance Investment Funds Key Features Contents Introduction....................................................................................................................................7 Parallel between thet development of Microfinance Institutions ...............8 Initial social and development objectives ................................................................................................................8 Realisation of a potential and necessary financial return in addition to the social return ....................8 Institutionalisation and professionalisation ...........................................................................................................9 Balance between social return and financial return..........................................................................................12 Search for funding and for investors........................................................................................................................13 Analysis of Microfinance Investment Funds......................................................... 14 Key players.........................................................................................................................................................................15 Types of investors............................................................................................................................................................17 Distribution of Microfinance Investment Funds based on their objectives.................................................20 Distribution of Microfinance Investment Funds based on their overall risk profile..................................22 Distribution of Microfinance Investment Funds based on their size.............................................................23 Increasing commercialisation of the Microfinance sector.......................... 25 Socially Responsible Investment and financial opportunities.........................................................................25 Current situation: a growing involvement of the traditional financial sector in the international and in the local capital markets.........................................................................................25 Reaching critical size....................................................................................................................................................28 Main benefits of Microfinance Investment Funds............................................ 29 Appendix........................................................................................................................................ 31 I5 ... - tailieumienphi.vn